David is milking 80 cows. His wife, Mary, does not work off farm so the farm generates the full family income.
Farm turnover amounts to €300,000, excluding Basic Income Support for Sustainability (BISS). He has earned an average of €65,000 for the last three years and expects this to stay around the same. They have two children under the age of 10.
Benefit
With the increase in the married person’s tax credit of €200 and self-employed credit of €100 each, as well as the benefit from the increase of €4,000 in the standard rate tax band and the €308 saving in USC, the family will pay €1,108/annum less in income tax before VAT.
The energy credit provides a €450 benefit and a child benefit double payment provides an extra €280.
Peter is married to Joan and they have two children. They have 90ac in a mixed farm, with sucklers and sheep.
They have a car, jeep and a 100hp tractor. They travel 15,000km in the car, 10,000km in the jeep and burn 1,000l of diesel in the tractor. Joan cares full-time for the children and earns less than €7,200 off-farm. The total household income is €45,000.
Benefit
With the increase in the married persons tax credit of €200 and the self-employed credit of €100, the income credit of €100 and the €100 increase in the home carer’s credit, taken with the reduction in USC €172, the couple will have an additional €672.
The double child benefit of an extra €140/child and the energy credit of €450 will be a major assistance. The carbon tax increase will have an immediate effect of 3c/l.
John is a single man and farms 250ac, 100ac owned and 150ac in a long-term lease. Last year, his tillage enterprise had an income of €255,000 and profit of €55,000.
He expects to only break even this year and next year. He has an empty house on an outfarm valued at €220,000 and wants to rent this out.
Benefit
John will see a benefit of €200 following the increase in the tax credits, the increase in the standard rate band of €2,000 and the USC charge if he has a taxable income, but this will not be an immediate benefit.
All in, he will have a net extra income of €600. However, the rental incentive on residential rental will take up to €6,000 of this income out of the tax net, which will be beneficial.
Aoife is 22 and a recent agricultural college graduate.
Her uncle wants to gift her a 100ac farm, currently valued at €1.4m, in 2024. The pair are also looking at selling an outfarm of 25ac to buy a piece of land closer to them.
Aoife also runs her own agri-contracting business and uses approximately 9,000l of diesel per annum.
Benefit
With an increase in carbon tax, there will be a cost effect to the business and no carbon tax relief on the fuel used in the agri contracting.
The stamp duty relief and young trained farmer stock relief have been extended.
Farm consolidation relief is available to the end of 2025 and will allow the land to be sold and purchased with capital tax reliefs, minimising the tax payable.
There were no changes to the transfer, so 2023 is the year to examine before the recommendations of the Commission on Taxation are implemented.
Aoife needs to ensure that she can qualify for “favourite niece relief” on the land being taken from the uncle or major tax could apply.
Andrew is a small hill sheep farmer and is married to Alice. They have four children aged between two and 18. Alice works part-time off-farm and earns €12,000/annum. Andrew is a recipient of Farm Assist.
Benefit
Andrew has no income tax/USC liability. He will have no tax gain on the previous year but schemes will be vital to his enterprise. Also, the increase in benefits of €12/week and the one-off double payments will be a major help.